Pubcos under cosh on radio show
The pubcos have taken another battering from the Fair Pint group in the wake of the first Business and Enterprise Committee hearing.
Speaking on Radio 4's You and Yours show hosted by ex-Enterprise lessee Peter White, Clive Davenport of The Federation of Small Businesses (FSB) hit out at the pubcos.
"A pub not far from where I live, over the last 8 years, there has been five tenants — which gives an average turnover of 18 months per tenant, which is pretty bad in itself.
"But worst of all is that one of the tenants committed suicide and that's absolutely disgraceful — no other word for it."
When asked if it was because of the pubco, he answered: "The landlords of pubs in the area are firmly of that opinion."
Enterprise lessee Paul Daley, who also runs another free of tie bar in the East End of London, re-iterated his point made to the committee that beer was far too expensive through the pubco.
He said that Carling was 60% more expensive, Grolsch 55% and Budvar 53% at his tied pub. He added that rent at the tied pub worked out at £25 per square foot but was only £23 per square foot at his free of tie venue.
Fair Pint founding member Brian Jacobs said "more and more" pubs would close if pubcos continued unchecked.
"The clear solution is the current inquiry has to recommend to have the beer tie removed," he said.
While he admitted that this would cost the pubcos dearly, he replied: "You have either got a few pubcos that are going to be in difficulty — and lets face it the shareholders put money in at their own risk — or you've got 25,000 tenants who are in desperate trouble."
Punch and Enterprise declined to appear on the show. Punch said that it "encouraged individual licensees to speak directly to them" and "do their best to resolve issues amicably".
Enterprise said it believed it was inappropriate to comment before they had given evidence to the Select Committee.
The pubcos are expected to give evidence on 9 December.
You can listen to the show at www.bbc.co.uk/radio4.
